Changes to the Federal Employees Group Life Insurance Program Are Needed

FPCD-77-19: Published: May 6, 1977. Publicly Released: May 6, 1977.

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A comparative analysis was made of life insurance and other death benefit programs available to Federal employees and retirees with similar programs in the non-Federal sector.

Death benefits for Federal Employees are available from several sources, including the Federal Employees' Group Life Insurance Program, various retirement programs, and workers' compensation. As a package, these are generally comparable with benefits provided by larger non-Federal employers; however, benefits are less for younger employees and retirees over age 65. Federal employees also pay more for their benefits than do their non-Federal counterparts.

Matter for Congressional Consideration

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Matter: Changes should be made to the method of funding and the benefit structure of the Federal life insurance program to make coverage attractive and equitable. The Congress should reevaluate the funding requirements and should consider making basic changes to the structure of the program. Possible changes which should be considered include: prefund only those liabilities arising from benefits payable to retired employees; revise present legislation to provide that the Government pay the interest on the program's unfunded liability if the present funding method is retained; use Government contribution as payment in full for a portion of the coverage for all employees; continue premium payments to age 65 rather than terminating at retirement; and provide greater amounts of optional insurance coverage to employees.


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